Select Canadian or U.S. Mortgage. YEARS MONTHS Loan Amount : Mortgage Term 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30 0 1 2 3 4 5 6 7 8 9 10 11 Market Rate : % Amortization 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0 1 2 3 4 5 6 7 8 9 10 11     3.7 % is 3 yr mode of Current Rates Compare Rate : % Less than Market = Beneficial

To compare financing, input Compare Rate and Market Rate with mortgage amount, term, and amortization. Then click on CALCULATE. Use this calulator to compare discounted mortgage rate offers, the costs or benefits of assuming existing mortgage financing, or calculating the Interest Rate Differential and payout penalty on your mortgage.

A $ 100,000 mortgage at current market rates of 3.7 % with a 36 month term and 300 month amortization results in monthly payments of $ 510 and a balance at term maturity of $ 92,253. A higher than market mortgage rate of 6 % would result in a payment that is $ 130 higher each month and a balance at term maturity that is also $ 2,013 higher. The present value of the differences in payments with this adverse financing is $ 6,226. You would be WORSE OFF with the 6 % mortgage by a Present Value of $ 6,226.

Interest Rate	Payments of $ 510 per Month			Balance at TERM
MARKET 3.7 %		36 Months		$ 92,253
Canadian Calculation - Compounding Semi-Annually
Payments of $ 640 per Month
COMPARE 6 %		36 Months		$ 94,265
$ 130 higher per Month
DIFFERENCE -2.299 %		36 Months		DIFFERENCE $ -2,013
PRESENT VALUES (PV) ( 3.7 % discount )
PAYMENTS : $ -4,422
BALANCE : $ -1,803
$ -6,226	PV Cost of Adverse Financing (6 % OVER market 3.7 %)
$ -6,690	Absolute Cost of Adverse Financing

Figures are rounded to nearest dollar. The above information is deemed reliable, but is not guaranteed.